20080228final_order_no_30505.pdf

Office of the Secretary
Service Date
February 28, 2008
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF THE APPLICATION OF
CITIZENS TELECOMMUNICATIONS OF
IDAHO DBA FRONTIER COMMUNICATIONS
OF IDAHO FOR AN INVESTMENT TAX
CREDIT FOR INSTALLING QUALIFIED BROADBAND EQUIPMENT
CASE NO. CTC- T -08-
ORDER NO. 30505
On February 5, 2008 , Citizens Telecommunications of Idaho dba Frontier
Communications of Idaho filed an Application requesting approval of equipment for the
broadband tax credit pursuant to Order No. 28784 and Idaho Code ~ 63-30291(4). To be eligible
for the tax credit, the taxpayer must obtain an Order from the Commission confirming that the
equipment has been installed and that it meets the definition of qualified broadband equipment
set out in Idaho Code ~ 63-30291(3)(b). Qualified broadband equipment must be capable of
transmitting signals at a rate of at least 200 000 bits per second (bps) to a subscriber and at least
125 000 bps from a subscriber. The qualified broadband equipment must also "be necessary to
the provision of broadband service and an integral part of a broadband network." Idaho Code
63-30291(3)(b)(i). In this Order, we find that the Company s investment meets the applicable
standards.
THE APPLICATION
Frontier s Application identifies the Company s broadband investments for the year
2007. The Application indicates that the Company installed various components as part of its
Asymmetrical Digital Subscriber Line (ASDL) broadband network for the provision of high-
speed Internet access to customers in McCall, Cascade, Donnelly, Homedale, New Meadows
Riggins, Garden Valley, Horseshoe Bend, Wilder, and Parma. Frontier indicates that it offers
network transmission rates of up to 3 Mbps from a subscriber and up to 512 Kbps to a
subscriber. The Company declares that broadband service is now available to approximately
87% of its total customer base. The Application identifies a broadband tax credit investment of
over $600 000 in 2007.
ORDER NO. 30505
ST AFF REVIEW
To implement its responsibilities under Idaho Code ~ 63-30291, the Commission
issued Procedural Order No. 28784 in July 2001. This Order identifies information that must be
included in an application for a broadband tax credit. Once the information is filed with the
Commission, the Staff reviews the application and submits a recommendation to the
Commission.Staff has reviewed the list of proposed broadband equipment submitted by
Frontier and believes that the equipment identified meets the statutory criteria. Staff therefore
recommended approval of the Application and further recommended that the Commission
forward an approving Order along with a copy of the original Application to the Idaho State Tax
Commission.
COMMISSION FINDINGS
Having reviewed Frontier s Application and Staff s recommendation, we find that the
Application for a qualifying broadband equipment Order should be granted. The Company has
demonstrated that it installed qualifying broadband equipment, identified in its Application
during 2007 in conformance with Idaho Code ~ 63-30291. We further find that as configured
the installed equipment is an integral part of a broadband network necessary to deliver broadband
services to Idaho customers. Based on the foregoing, the Commission issues this Order
confirming that Citizens Telecommunications of Idaho dba Frontier Communications of Idaho
has installed qualified broadband equipment as a precondition to seeking an Idaho broadband tax
credit. The Commission makes no findings regarding the costs of the installed broadband
equipment.
ORDER
IT IS HEREBY ORDERED that Citizens Telecommunications of Idaho dba Frontier
Communications of Idaho s Application for an Order certifying that it has installed qualifying
broadband equipment for 2007 is granted.
IT IS FURTHER ORDERED that a copy of this Order and a copy of the Application
be served upon the Idaho State Tax Commission.
THIS IS A FINAL ORDER. Any person interested in this Order (or in issues finally
decided by this Order) may petition for reconsideration within twenty-one (21) days of the
service date of this Order with regard to any matter decided in this Order. Within seven (7) days
ORDER NO. 30505
after any person has petitioned for reconsideration, any other person may cross-petition for
reconsideration. See Idaho Code ~~ 61-626 , 63-30291(4).
DONE by Order of the Idaho Public Utilities Commission at Boise, Idaho, this
g ~
day of February 2008.
MARSHA H. SMIT , COMMISSIONER
ATTEST:
~1Ejt-
Commission Secretary
O:CTC-08-01 ks
ORDER NO. 30505